Abstract

The aim of this study is to review research and discusses the phenomenon of staff turnover generally, its impact and how it has been managed in the hotel industry specifically? As stated by Step Business Builders (2010) “... once businesses determined the future of the workforce, now the workforce determines the future of the business”. It might be beyond the scope of this study to capture all the literature on staff turnover hence the focus is on that in last 25 years, how the research has helped to understand this phenomenon? And what lessons the hotel industry could learn to manage this process? To make an effective analysis some information is drawn from the literature prior to 1990 with a multidisciplinary approach. In order to effectively meet the objectives of the study, a critical analysis is undertaken with regard to turnover culture in hospitality industry, factors and issues that impact staff turnover globally with specificity of the situation in New Zealand. The study notes that staff turnover is not just a management issue from a micro-environment perspective of a company, but it is also affected by macro-environmental factors outside the organization such as economic conditions. For example in New Zealand’s domestic market and in the international market, since 2007 the staff turnover rates have slightly dropped due to the economic recession. Employees are not feeling confident in ‘actively’ seeking a better job. Current study attempts to understand the turnover issues from both the industry and the personnel perspective and makes suggestions for future practice and research.